PETERBOROUGH, Monday, January 15, 2018 – Today, the Peterborough Chamber of Commerce, in partnership with the Ontario Chamber of Commerce (OCC) provided the Ontario government with 11 recommendations for the upcoming provincial budget that will help businesses manage costs and secure the province’s competitive advantage. The submission, presented to the Standing Committee on Finance and Economic Affairs, calls on the government to implement taxation reforms and smart infrastructure and transportation spending to maximize growth and benefit all regions of Ontario.
As the cost of doing business in the province continues to increase, and Ontario employers take on one of the largest wage increases in recent history, Ontario’s Chamber Network is recommending the government reinstate the scheduled corporate income tax rate from 11.5 per cent to 10 per cent. The submission also calls on the harmonization of the Business Education Tax across the province, as well as targeted reductions to the Employer Health tax.
“Employers in the Peterborough area are feeling the pressure from rising costs,” said Stuart Harrison, President & CEO, Peterborough Chamber of Commerce. “The recent minimum wage and labour and employment standard changes will cost Ontario businesses an estimated $23 billion over the next two years. When HST was introduced so were measures to help mitigate the cost of changes. This is a similar situation where transitional support is needed for business.”
The pre-budget submission also recommends that the government create additional small business deduction tax brackets, as well as delay taxation on corporate income growth to overcome the scale-up challenge. Currently, all businesses with an annual income of $500,000 or less are taxed at a flat rate. A bracketed taxation system would give start-ups and SMEs more room to grow. Currently in Ontario, 71 per cent of private sector jobs can be attributed to the activities of small and medium sized enterprises.
“Ontario needs a competitive taxation system that encourages investment and minimizes red tape,” said Harrison. “As the U.S. pursues tax reform that would lower their federal corporate tax rate by 15 per cent, and with the uncertain future of NAFTA, we must find ways to keep Ontario competitive.”
The recommendations outlined in the OCC’s pre-budget submission all come directly from Ontario’s Chamber Network through policy resolutions at the OCC’s AGM. Among them is one from the Peterborough and Kingston Chambers to increase the levy paid by post-secondary institutions, hospitals and jails in lieu of taxes.
are struggling with a multitude of financial pressures and the current levy of $75 per head and bed no longer accurately reflects the cost of delivering services,” said Jim Hill, Chair of the Board of Directors, Greater Peterborough Chamber of Commerce. “For Peterborough, adjusting the levy to $100 per head and bed would see $274,000 in additional funds each year in the municipal budget.”
Read the full submission and all 11 recommendations here.
For more information please contact:
Sandra Dueck, Policy Analyst/Communications Specialist
705.748.9771 x215 or email@example.com